Feds OK breakup to cut power costs in Ark., Miss.

Associated Press - November 19, 2009 12:14 PM ET

LITTLE ROCK, Ark. (AP) - Federal regulators have authorized Entergy Corp.'s utilities in two states to leave a multi-state agreement - a move expected to save money for ratepayers in Arkansas.

The Federal Energy Regulatory Commission on Thursday accepted requests by Entergy Arkansas and Entergy Mississippi to leave a pact with Entergy companies in Louisiana and Texas. Entergy Arkansas plans to exit in December 2013 while Entergy Mississippi wants to leave in 2015.

Regulators in Arkansas worried the system agreement could cost its ratepayers millions of dollars through a rate-equalization plan - while perhaps lowering costs in Louisiana, Mississippi and Texas.

Other companies in the pact are Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Texas and Entergy New Orleans.